Paying Abroad: Cards, Cash and Currency Exchange Explained

Paying for things abroad has gotten easier, with contactless cards accepted in many places. But fees and exchange rates can quietly add up. A few habits keep more of your money for the trip itself.

Cards: your main tool

• Foreign transaction fees: many cards charge a percentage on purchases made abroad, while others don’t. Check your card’s terms.
• Card networks: widely accepted networks are easiest; some small merchants take only certain cards, or only cash.
• Contactless and mobile wallets: common in many countries and handy for transit and small purchases.

Always choose the local currency

When a card machine asks whether to pay in dollars or in the local currency, choose the local currency. Paying in dollars, known as dynamic currency conversion, often comes with a less favorable rate.

Try this: The same choice can appear at ATMs. If the machine offers to lock in a conversion rate, decline and continue in the local currency.

Cash and ATMs

• Use ATMs attached to banks; they’re generally more reliable than standalone machines in tourist areas.
• Check your bank’s fees for foreign withdrawals, and whether it has partner banks abroad.
• Fewer, larger withdrawals can reduce per-withdrawal fees, but don’t carry more cash than you need.
• Keep small notes and coins for markets, tips and transit.

Method	Best for	Watch for
Credit card	Most purchases, lodging, larger bills	Foreign transaction fees
Debit card	ATM withdrawals	ATM and bank fees
Cash	Markets, small shops, tips	Theft and loss
Airport exchange counter	Emergencies on arrival	Less favorable rates

How much cash to carry

• Card-friendly destinations: a small amount for transit, tips and the odd cash-only shop is often enough.
• Cash-heavy destinations: plan for more, and know where bank ATMs are near your lodging.
• Rural areas and markets: carry enough for the day, since ATMs may be scarce.
• Split it up: keep a day’s spending in your wallet and the rest somewhere secure.

Official tourism websites and recent traveler reports are good places to check how widely cards are accepted.

Protect your money

• Carry two cards and keep one separate as a backup.
• Save your bank’s international phone number in case a card is blocked.
• Turn on app notifications so you see every charge right away.

Caution: Card skimming can happen anywhere. Cover your PIN, use ATMs in well-lit or indoor locations and check your statements during the trip.

The bottom line

Use a card without foreign transaction fees where you can, always pay in local currency, withdraw cash from bank ATMs and carry a backup card. Splitting costs with others? Our guide to planning a group trip with friends covers keeping shared spending fair.

FAQ

Should I exchange money before I travel?
Some travelers like a little local cash on arrival, but exchanging large amounts in advance or at airport counters can come with less favorable rates. Withdrawing from a bank ATM on arrival is often simpler.

What is dynamic currency conversion?
It’s when a card machine or ATM offers to charge you in your home currency instead of the local one. The convenience often comes with a less favorable exchange rate, so choosing the local currency is usually better.

Do I need to tell my bank I’m traveling?
Many banks no longer require travel notices, but some still recommend them. Check your bank’s app or website, and make sure your contact details are up to date.